TEHRAN - The head of the Securities and Exchange Organization (SEO) said that the capital market’s share in the national financing system is going to increase to 50 percent over the next five years, positioning it as a key engine of economic activity, employment, and industrial growth.

Hojjatollah Seyyedi, speaking to Bourse News, said the organization’s 14th development plan includes targeted measures to stimulate production, starting with fiscal incentives embedded in the national budget.

He outlined two additional pillars of the government’s production strategy: implementation of the Law on Supporting Production and a five-part economic development plan currently being drafted by the Planning and Budget Organization (PBO).

Seyyedi said new investment funds have been created within the capital market to support production, including Murabaha bonds aimed at financing small- and medium-sized enterprises.

He said the Securities and Exchange Organization is targeting a “50-50” financing model, balancing bank loans and capital market resources, over a four- to five-year horizon. “Initial public offerings in project-based companies have already begun, and infrastructure for Murabaha bond issuance is in place,” he said, noting a surge in applications from producers seeking bond issuance licenses.

Seyyedi pointed to growing investor interest in the Tehran Stock Exchange, with daily trade volumes surpassing 20 trillion rials (about $4.0 billion) and continuing to climb.

Calling the capital market “the engine of Iran’s economic operations and employment,” he emphasized its role in driving future development.

On the role of tech-based firms, Seyyedi said five knowledge-based and startup companies have already been listed, while around 25 others are seeking approval, some having already secured permits from the Vice Presidency for Science and Technology.

EF/MA